Moorhead Area Public Schools board approves preliminary 2025–26 budget and 10‑year LTFM plan

The Moorhead Area Public Schools Board of Education on June 23 approved the district’s 2025–26 annual operating plan, including a preliminary general fund budget and an updated 10‑year long‑term facility maintenance (LTFM) plan.

Director of business services Cam Wehenbach presented the budget and projections. “The district is projecting revenue of $118,800,000 and expenses of $117,300,000,” Wehenbach said, noting a projected net fund‑balance increase of $1,500,000 and a year‑end projected fund balance of $13,170,000 for FY26.

The approval matters because the FY26 plan lays out near‑term spending and the district’s long‑range work on facility upkeep and capital needs. The presentation showed salaries and benefits will account for roughly 79.3% of general‑fund expenditures (60.7% salaries and 18.6% benefits), while unassigned fund balance is projected at 3.51% of expenditures—well below the district policy target of 12–15%.

Key figures and assumptions presented to the board include: an average daily membership projection of 7,302 students; a state general education formula allowance of $7,481 per pupil for FY26 (up from $7,281); an increase in the Teachers Retirement Association (TRA) employer contribution from 8.75% to 9.81%; and the budgeted employer share for the upcoming Paid Family and Medical Leave premium. Wehenbach also said the district included $6.2 million in committed and assigned fund balances for severance obligations and capital projects.

Board members and staff discussed revenue pressures from state funding and one‑time grants. Wehenbach noted reductions or changes in several categorical aids after the legislative session, including decreases to student‑support personnel and library aid and a change in special‑education transportation reimbursement from 100% to 95% in FY26 (a multi‑year reduction discussed in the legislative update). The board also reviewed LTFM impacts; administrators said additions of new square footage for growth have reduced the district’s average facility age, which lowers some LTFM aid under the state formula.

Board discussion touched on options to rebuild reserves. Superintendent Dr. Michael Lunick told the board they face two basic choices: generate additional local revenue (via an operating or capital projects levy) or make deeper reductions. “If you as a board believe that we still have fiscal year 29 as our goal … we will need to generate additional revenue,” Lunick said, describing scenarios the administration modeled to reach the board’s reserve target.

The board approved the plan by motion. The administration said it will present revised numbers as new state or program information becomes available and noted a revised budget could come back to the board in January or February of 2026.

The decision sets the district’s FY26 spending framework while leaving open further changes if revenue or state policy shifts.

The board’s vote approved the preliminary budget and the updated 10‑year LTFM plan; the administration will continue to monitor legislative and grant developments and return with updates as needed.